Forex Technical & Market Analysis FXCC Feb 05 2013

Forex Technical & Market Analysis FXCC Feb 05 2013

Merkel offers support to Spanish government under fire

Spanish President Mariano Rajoy and German Chancellor Angela Merkel held a joint press conference on Monday in Berlin, during which the Chancellor assured she had not lost confidence in the governing Spanish People’s Party, which currently faces corruption allegations. “We have a relation of full trust in the Spanish government... I have the impression that the whole Spanish government is working to drive down unemployment, to push through structural reforms,” the Chancellor said. Mariano Rajoy assured that his government is stable and that the People’s Party might take legal action against those who leaked documents which allegedly prove that the party received undeclared money. Later the Spanish president went on to describe the reforms already implemented in order to halt the debt crisis and said that new measures, aimed at boosting growth, will be announced shortly. Angela Merkel expressed confidence that the reforms will soon “bear fruit” and promised cooperation on bringing down youth unemployment in Spain by facilitating internships and apprenticeships in Germany for young Spaniards.

London session ahead will bring UK Services PMI data at 09:30 GMT, expected to come slightly lower than 50, level that indicates economic expansion, at 49.8, for second month in a row, for first time since early 2011. GBP is one of strongest currency among majors for last trading hours, even stronger than Yen or CAD, the two other strongest majors for last hours.
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Forex Economic Calendar
2013-02-05 08:58 GMT | E.M.U. Markit Services PMI (Jan)
2013-02-05 09:28 GMT | United Kingdom. Markit Services PMI (Jan)
2013-02-05 10:00 GMT | E.M.U. Retail Sales (YoY) (Dec)
2013-02-05 15:00 GMT | United States. ISM Non-Manufacturing PMI (Jan)

Forex News
2013-02-05 05:59 GMT | GBP/USD above 1.5750 ahead of London open
2013-02-05 05:55 GMT | Time for a meaningful correction in EUR/USD?
2013-02-05 05:02 GMT | AUD/NZD capped below 1.24 following RBA
2013-02-05 04:28 GMT | EUR/AUD above 1.2950 on RBA rates unch



TECHNICAL ANALYSIS
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EURUSD :
HIGH 1.35202 LOW 1.34812 BID 1.34845 ASK 1.34851 CHANGE -0.2% TIME 07:59:02



OUTLOOK SUMMARY : Down
TREND CONDITION : Down trend
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium

MARKET ANALYSIS - Intraday Analysis

Upwards scenario: Discounted value of the EURUSD might face next immediate resistive barrier at 1.3510 (R1). Any price appreciation above it would suggest next resistances at 1.3531 (R2) and 1.3552 (S3) as recovery targets. Downwards scenario: Instrument maintained clear downtrend formation by trading on the negative territory. Key resistive bastion lie at 1.3476 (S1). Weakening below it would enable expected targets at 1.3457 (S2) and 1.3437 (S3).

Resistance Levels: 1.3510, 1.3531, 1.3552
Support Levels: 1.3476, 1.3457, 1.3437

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GBPUSD :
HIGH 1.57664 LOW 1.57438 BID 1.57576 ASK 1.57586 CHANGE -0.03% TIME 07:59:03



OUTLOOK SUMMARY : Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium

Upwards scenario: Hourly chart frame corrective bounce faces good resistance barrier at 1.5771 (R1) yesterday. Appreciation above it might likely push the pair toward to next targets, located at 1.5782 (R2) and 1.5793 (R3). Downwards scenario: On the other hand, we can observe that medium-term bias remains negative. Depreciation below the support level at 1.5743 (S1) would open route towards to initial targets at 1.5731 (S2) and 1.5719 (S3) in potential.

Resistance Levels: 1.5771, 1.5782, 1.5793
Support Levels: 1.5743, 1.5731, 1.5719

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USDJPY :
HIGH 92.56 LOW 91.978 BID 92.365 ASK 92.371 CHANGE -0.01% TIME 07:59:05



OUTLOOK SUMMARY: Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium

Upwards scenario: USDJPY trapped to the correction mode after the initial uptrend development. Fresh peak formed today offers a good resistance level at 92.58 (R1). Break here is required to take the pair towards to initial targets, located at 92.80 (R2) and 93.03 (R3). Downwards scenario: Next attractive level for the downside expansion locates at 92.18 (S1). Loss here might take the pair towards to initial targets at 91.97 (S2) and 91.75 (S3).

Resistance Levels: 92.58, 92.80, 93.03
Support Levels: 92.18, 91.97, 91.75

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